Methane to Markets Program Canadian Perspective

Methane to Markets Program Canadian Perspective Energy Management Workshop for Upstream and Midstream Operations January 17, 2007 Overview ƒ Methane to Markets Partnership ƒ Oil and Gas Technical Committee Opportunities for Canada ƒ Natural Gas STAR International 2 2 Methane to Markets Partnership ƒ International M2M Partnership launched November 2004 – Seeking to champion cost effective methane emission reduction opportunities globally ƒ Canada joined July 2005 – Canada has significant potential to contribute ƒ Current 19 member states include Kyoto and AP6 signatories 3 3 Methane to Markets Partnership ƒ Advances recovery and use of methane as a valuable clean energy source ƒ Encourages development of cost-effective methane recovery and use opportunities in – – – – coal mines landfills oil and gas systems and agriculture (manure waste management) ƒ Private companies, multilateral development banks and other relevant organizations participate by joining the Project Network – over 350 organizations now participating ƒ 19 partner countries Argentina Australia Brazil Canada Colombia China Ecuador Germany India Italy Japan Korea Mexico Nigeria Poland Russia Ukraine United Kingdom United States 4 4 Oil and Gas Technical Committee ƒ Co-chaired by Mexico and Russia – Javier Bocanegra of PEMEX – Kaplan Basniev – Gubkin Russian State Univ. ƒ Canada has participated since first meeting in Tomsk, Russia September 2005 – Canadian Project Network Partners fully engaged throughout – Canada recently appointed vice-chair 5 5 Oil and Gas Technical Committee ƒ “The main purpose of Oil and Gas Subcommittee activities is to locate and promote methane emissions reduction and utilization projects in the oil and gas sector” – Reasonable to assume that utilization should be in the most energy efficient way possible – Hence, energy efficiency and fuel gas optimization, along with fugitive’s reduction are in keeping with this stated objective 6 6 Oil and Gas Technical Committee Mission statement excerpts to which Canada can contribute internationally: ƒ Develop project evaluation and development templates – CETAC-West eco-efficiency integrated audit and benchmarking protocol • Systematic • Strategic • Highly reproducible and verifiable 7 7 Oil and Gas Technical Committee ƒ Identify short, medium and long term projects and activities – CETAC-West eco-efficiency integrated audit and benchmarking protocol – Highly transferable to UOG unit operations domestically or internationally – Will ensure credible verification of opportunities and logical scheduling of implementation, and post audit monitoring for confidence • Critical for developing budgets, technical and permit considerations, CDM/JI etc. 8 8 Oil and Gas Technical Committee ƒ Identify methane emissions recovery and use opportunities – Available or developing technologies • PTAC TEREE and ARPC – Available or developing best practices • CETAC-West audit team unit operations optimization • CAPP, AEUB, EC – Fugitives BMP • AEUB Directive 60 – Flaring and Venting 9 9 Oil and Gas Technical Committee ƒ Identify key barriers to methane emissions reduction project development – Economics – Technical – Cultural ƒ Abundant knowledge in Canada and the US – Much needed in some M2M Partner countries 10 10 Emerging Canadian Opportunity ƒ Minister Lunn’s announcement January 17, 2007 ƒ …”enforceable and achievable regulation” – Enforceability will largely be the work of lawyers writing regulatory documents – Will require competent regulators 11 11 Emerging Canadian Opportunity ƒ …”enforceable and achievable regulation” – Achievability can be established through credible, verifiable and reproducible evaluation protocols such as the eco-efficiency audit and benchmarking – Incentivization for demonstration and implementation of verified technology – Optimized investment of R&D (gov’t and industry) to develop implementable sciencebased regulation 12 12 Emerging Canadian Opportunity There is precedent for international uptake of “made in Canada” achievable regulation: ƒ The World Bank Global Gas Flaring Reduction Initiative was largely modeled after AEUB Directive 60 – R&D funded by CAPP, EC, NRCan-PERD was incorporated into this science-based directive 13 13 Natural Gas STAR International Available to Canadian Industry ƒ The Natural Gas STAR International Program is U.S. EPA’s contribution to Methane to Markets – The Natural Gas STAR Program is a flexible, voluntary partnership between EPA and the U.S. oil and natural gas industry designed to cost-effectively reduce methane emissions from natural gas operations. ƒO i l a n d G a s S ƒ Natural Gas STAR helps companies implement methane-saving projects through technology transfer international operations to voluntarily reduce methane emissions ƒ Over 110 U.S. natural gas companies and 7 international companies 14 14 Natural Gas STAR International ƒ Seven Charter Partners ƒ Participation involves: – Developing an implementation plan – Identifying and implementing cost-effective projects – Reporting your success ƒ Support from Gas STAR International is available to: – Identify top cost-effective methane reduction project opportunities – Conduct project pre-feasibility analysis – On-site training and workshop development 15 15 Natural Gas STAR - Key Components ƒ Technology transfer – Provide technical information and training – One-on-one assistance to identify and implement cost-effective methane emission reduction projects ƒ Reporting – Maintain records of voluntary actions Technology Transfer Workshops Annual Reports 16 16 Contact Information ƒ Michael Layer 819-953-5262 michael.layer@ec.gc.ca ƒ Roger Fernandez 202-343-9386 fernandez.roger@epa.gov ƒ epa.gov/gasstar ƒ methanetomarkets.org 17 17